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Residential Secure Income plc (RESI) Fair Value & Analysis

Real Estate · GB · Market cap 102M GBX

RS Residential Secure Income plc RESI · LSE
Price£0.5520
Fair Value£1.38
Upside+150.0%
Quality58/100
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Mixed Growth
Loss-making · -5.5% net margin
generates free cash flow
7.45% dividend yield
Ranks above peers (7/11)
Narrow moat 43/100
Evidence: Medium Range £1.04 – £1.71 Share as image

Fair value as of: Jul 14, 2026

From 10 valuation models · updated 26 days ago

Fair value updated Jul 14, 2026, revised from £1.42 to £1.38 (−2.8%) since Jun 26, 2026. Share price −49.6% over the past month.

A solid business, screening 150% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£1.04). The market is more pessimistic than our downside scenario.
  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

£1.77 £0.5480 Fair Value £1.38 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range £0.5480 – £1.77 · fair‑value band £1.04 – £1.71 · the £0.5520 price screens below the £1.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Residential Secure Income plc (RESI) currently trades at £0.5520, while our model-based Fair Value estimate is £1.38, implying the stock looks roughly 150.0% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Residential Secure Income plc generated revenue of £29.8M at a net margin of -30.6%. Revenue declined 0.7% year over year. It earns a return on equity of -6.4%. The balance sheet holds a net cash position of £7.6M. Fundamentals as of Jul 14, 2026

Our scenario range runs from £1.04 (bear case) to £1.71 (bull case); at £0.5520, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Real Estate peers we cover trades at -44% fair-value upside, at 150%, RESI screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £0.7200 £1.04 £1.45 72
Gordon GGM £0.2900 £0.4800 £0.6200 70
Rev-Margin DCF £0.7700 £1.25 £1.84 67
All 10 models by family
DCF Models
FCF DCF £0.7300 £1.09 £1.59 38
5Y Revenue Exit £0.7700 £1.25 £1.89 39
10Y Revenue Exit £0.7200 £1.13 £1.71 36
Dividend Discount
Gordon GGM £0.2900 £0.4800 £0.6200 70
DDM Multi-Stage £0.2900 £0.4600 £0.5200 61
Multiples
EV/EBIT £1.46 £1.94 £2.41 53
EV/Revenue £0.8300 £1.16 £1.50 43
Asset-Based
NCAV (Graham) £0.3600 £0.4900 £0.7200 50
Growth DCF
Growth DCF £0.7200 £1.04 £1.45 72
Rev-Margin DCF £0.7700 £1.25 £1.84 67

Widest divergence: Multiples (£1.16) versus Dividend Discount (£0.4600). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) 29.8M GBX
Revenue growth (YoY) -0.3%
Net margin -5.5%
Return on equity -1.2%
Free cash flow 14.2M GBX FY2025
Operating margin 51.0%
More key figures
EPS (TTM) £-0.0100
Dividend yield 7.5%
EPS growth (YoY) -94.6%
Net cash 7.6M GBX FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 57 · Market factors (momentum, volatility) 20

Profitability 4
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 77
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Residential Secure Income plc is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns. With a focus on two residential sub-sectors in UK residential - independent retirement rentals and shared ownership - underpinned by an ageing demographic and untapped and strong demand for affordable home ownership.

Full company description

Residential Secure Income plc is a real estate investment trust (REIT) focused on delivering secure, inflation-linked returns. With a focus on two residential sub-sectors in UK residential - independent retirement rentals and shared ownership - underpinned by an ageing demographic and untapped and strong demand for affordable home ownership. ReSI plc's purpose is to deliver affordable, high-quality, safe homes with great customer service and long-term stability of tenure for residents. We achieve this through meeting demand from housing developers, housing associations, local authorities, and private developers for long-term investment partners to accelerate the development of socially and economically beneficial affordable housing. ReSI plc's subsidiary, ReSI Housing Limited, is registered as a for-profit Registered Provider of social housing and so provides a unique proposition to its housing developer partners, being a long-term private sector landlord within the social housing regulatory environment. As a Registered Provider, ReSI Housing can acquire affordable housing subject to s106 planning restrictions and housing funded by government grant. In December 2024, shareholders voted for and accepted a new investment objective which seeks to realize all the existing assets in the Company's portfolio in an orderly manner. The Company will pursue its investment objective by effecting an orderly realization of its assets while seeking to balance maximizing returns for Shareholders against timing of disposals whilst ensuring the interests of residents are protected. Capital expenditure will be permitted where it is deemed necessary or desirable in connection to the realization, primarily where such expenditure is necessary to protect or enhance an asset's realizable value, to comply with statutory or regulatory obligations, to protect other stakeholders, to comply with the terms of any funding arrangement or to facilitate orderly disposals. Residential Secure Income plc was incorporated in 2017 in United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Residential Secure Income plc reported revenue of £29.8M in FY2025 versus £13.5M in FY2021, a compound +21.9%/yr. Reported net income was −£9.1M in FY2025.

Growth Quality 52/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£29.8M
Latest YoY
−2.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+36.7%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.2%
Revenue +21.9%/yr
FY21 £13.5M
FY22 £15.4M
FY23 −£20.7M
FY24 £30.5M
FY25 £29.8M
Net income
FY21 £11.2M
FY22 £13.3M
FY23 −£23.2M
FY24 −£10.0M
FY25 −£9.1M

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Cite: Fair Value Calculator (2026). "Residential Secure Income plc Fair Value". https://www.fairvalue-calculator.com/stock/RESI

Peer Group

REIT - Residential · 56 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Above median
Fair Value upside +150% · Top 25%
Return on assets 3% · Top 25%
Net margin (TTM) -5% · Bottom 25%
Operating margin (TTM) 51% · Top 25%
Revenue growth -0% · Below median
Dividend yield (TTM) 7.5% · Top 25%

Valuation Multiples vs REIT - Residential median · lower = cheaper

P/B 1.02× · Pricier than median
P/S (TTM) 4.61× · Cheaper than median
P/FCF 9.7× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 0 · sector 10
PAST 0 · sector 5
HEALTH 0 · sector 61
DIVIDEND 100 · sector 73

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more REIT - Residential stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
AvalonBay Communities, Inc AVB $190.80 $126.12 -34%
EQR EQR $67.86 $38.10 -44%
Essex Property Trust, Inc ESS $293.46 $177.90 -39%
Invitation Homes INVH $29.78 $16.82 -44%
Mid-America Apartment Communities, Inc MAA $133.88 $65.28 -51%
Sun Communities, Inc SUI $121.83 $114.79 -6%
UDR, Inc UDR $39.59 $19.76 -50%
American Homes 4 Rent (AMH or the General Partner) AMH $33.11 $21.44 -35%
Equity LifeStyle Properties, Inc ELS $66.05 $21.27 -68%
Camden Property Trust, an S&P 500 Company CPT $113.73 $41.87 -63%

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Frequently asked questions

Is Residential Secure Income plc (RESI) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of £1.38 versus a price of £0.5520, about +150% (undervalued).
What is the fair value of RESI?
Our model-based fair value for Residential Secure Income plc is £1.38 (as of Jul 14, 2026), built from audited fundamentals. The current price is £0.5520.
What is the quality score of RESI?
Residential Secure Income plc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Residential Secure Income plc (RESI)?
Residential Secure Income plc reported trailing-twelve-month revenue of about £29.8M (latest available figure, as of Jul 14, 2026).
What is the net profit margin of RESI?
The net profit margin of Residential Secure Income plc is about -30.6%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Residential Secure Income plc pay a dividend?
Residential Secure Income plc currently shows a dividend yield of about 7.85% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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